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Title 11, BankruptcyRelease 119-110

§1226 Payments

Title 11 › CHAPTER 12 — ADJUSTMENT OF DEBTS OF A FAMILY FARMER OR FISHERMAN WITH REGULAR ANNUAL INCOME › SUBCHAPTER II — THE PLAN › § 1226

Last updated Sep 23, 2026|Official source

Summary

The trustee must keep any payments until a plan is confirmed or denied. If a plan is confirmed, the trustee pays out under the plan. If a plan is not confirmed, the trustee returns payments to the debtor after taking out any unpaid claim allowed under section 503(b) and, if a standing trustee is serving, that trustee’s percentage fee. Before or when each plan payment goes to creditors, the trustee must pay unpaid claims of the kind in section 507(a)(2) and, if a standing trustee appointed under section 1202(c) is serving, the percentage fee fixed under section 1202(d). Unless the plan or the confirmation order says otherwise, the trustee makes the plan payments to creditors.

Full Legal Text

Title 11, §1226

Bankruptcy, Source: USLM XML via OLRC

(a)Payments and funds received by the trustee shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting—
(1)any unpaid claim allowed under section 503(b) of this title; and
(2)if a standing trustee is serving in the case, the percentage fee fixed for such standing trustee.
(b)Before or at the time of each payment to creditors under the plan, there shall be paid—
(1)any unpaid claim of the kind specified in section 507(a)(2) of this title; and
(2)if a standing trustee appointed under section 1202(c) of this title is serving in the case, the percentage fee fixed for such standing trustee under section 1202(d) of this title.
(c)Except as otherwise provided in the plan or in the order confirming the plan, the trustee shall make payments to creditors under the plan.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1202(c) and (d) of this title, referred to in subsec. (b)(2), was repealed by section 227 of Pub. L. 99–554, and provisions relating to appointment of and fixing percentage fees for standing trustees are contained in section 586(b) and (e) of Title 28, Judiciary and Judicial Procedure, as amended by section 113(b), (c) of Pub. L. 99–554. Codification For repeal of section effective Oct. 1, 1998, and subsequent reenactment of section, see note set out preceding section 1201 of this title.

Amendments

2005—Subsec. (b)(1). Pub. L. 109–8, § 1502(a)(9), substituted “507(a)(2)” for “507(a)(1)”. 1994—Subsec. (b)(2). Pub. L. 103–394 substituted “1202(c)” for “1202(d)” and “1202(d)” for “1202(e)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2005 AmendmentAmendment by section 1502(a)(9) of Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such

Effective Date

, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.

Effective Date

of 1994 AmendmentAmendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.

Effective Date

sPermanent reenactment of section effective July 1, 2005, see section 1001(a)(2) of Pub. L. 109–8, set out as a Repeal, Reenactment, and Termination of Chapter note under section 1201 of this title. For

Effective Date

s of section and

Amendments

extending periods for which section was reenacted prior to permanent reenactment, see

Effective Date

and

Effective Date

of 1999, 2001, 2002, 2003, and 2004 Amendment notes set out under section 1201 of this title.

Reference

Citations & Metadata

Citation

11 U.S.C. § 1226

Title 11, Bankruptcy

Last Updated

Sep 23, 2026

Release point: 119-110